List of London-based Venture Capital Firms + guide
Venture capital firms in London are important because they provide crucial funding for startups and early-stage companies, often in innovative and high-growth industries.
They also bring expertise, mentorship, and networks that can help these companies grow and succeed. By supporting these companies, venture capital firms contribute to technological progress, job creation, and economic growth.
This ressource starts with a list of active venture capital firms in London and continues with an in-depth guide to help you navigate the UK venture capital ecosystem.
|Id||Venture Capital Firms London||Investor details||City||Country|
2050 Capital (5 contacts 🔒)
2150 (more info 🔒)
24Haymarket (8 contacts 🔒)
3 Sisters Ventures (2 contacts 🔒)
3VC (5 contacts 🔒)
7percent Ventures (3 contacts 🔒)
83North (6 contacts 🔒)
Accel (10 contacts 🔒)
ACFInvestors (3 contacts 🔒)
Active Partners (10 contacts 🔒)
ActivumSG Ventures (7 contacts 🔒)
Ada Ventures (2 contacts 🔒)
ADV (7 contacts 🔒)
Advent Life Sciences (10 contacts 🔒)
Agronomics (5 contacts 🔒)
Ahren Innovation Capital (17 contacts 🔒)
Air Street Capital (2 contacts 🔒)
AlbionVC (7 contacts 🔒)
Amadeus Capital Partners (10 contacts 🔒)
Angular Ventures (3 contacts 🔒)
Anthemis (10 contacts 🔒)
Antler (65 contacts 🔒)
Apposite Capital (9 contacts 🔒)
Argan Capital Advisors (4 contacts 🔒)
Arix Bioscience (7 contacts 🔒)
Arts Alliance (3 contacts 🔒)
Ascension Ventures (10 contacts 🔒)
Atempo (10 contacts 🔒)
Atomico (30 contacts 🔒)
Augmentum Fintech (7 contacts 🔒)
Averroes Capital (7 contacts 🔒)
Aviva Ventures (2 contacts 🔒)
Avonmore Developments (2 contacts 🔒)
AVP (AXA Venture Partners) (6 contacts 🔒)
BackedVC (8 contacts 🔒)
Balderton Capital (20 contacts 🔒)
BallPark Ventures (5 contacts 🔒)
Battery Ventures (4 contacts 🔒)
Beacon Capital (8 contacts 🔒)
Beringea (10 contacts 🔒)
Bethnal Green Ventures (10 contacts 🔒)
Bgf Ventures (20 contacts 🔒)
Binance Labs (10 contacts 🔒)
BlackLion Ventures (4 contacts 🔒)
Blockchain Coinvestors (10 contacts 🔒)
Blossom Capital (4 contacts 🔒)
Boundary Capital (4 contacts 🔒)
Brandon Capital (more info 🔒)
Bridges Ventures (10 contacts 🔒)
Brighteye Ventures (12 contacts 🔒)
Btomorrow Ventures (8 contacts 🔒)
Cabot Square Capital (10 contacts 🔒)
Calculus Capital (more info 🔒)
Cancer Research Horizons (9 contacts 🔒)
Cass Entrepreneurship Fund (3 contacts 🔒)
Chalfen Ventures (1 contacts 🔒)
Channel 4 Ventures (4 contacts 🔒)
Charlotte Street Capital (4 contacts 🔒)
|More investors...||Full investor database||All||All|
Click here for the full list of 462+ VC funds in the UK
In the next sections you will get to know everything about venture capital firms in London:
A venture capital (VC) firm is a specialised type of financial institution that invests money in high-potential, high-risk, early-stage companies. The goal is to earn a high return on investment if these companies succeed and grow significantly.
Venture capital firms gather their funds from various sources like wealthy individuals, investment banks, endowments, pension funds, insurance companies, and other financial institutions. The amount of money in these funds can vary greatly, ranging from millions to billions of pounds.
Once the VC firm has its funds, it looks for startups or early-stage companies that demonstrate significant growth potential. The VC firm might invest anywhere from a few hundred thousand pounds to many millions in a single company, often acquiring a significant stake in the company.
For example, if a VC firm invests £5 million in a startup for a 20% ownership stake, this implies they value the company at £25 million (£5 million / 20%). If the startup does well and its value increases to £100 million, the VC firm's stake is now worth £20 million, earning them a sizable return.
Not all investments succeed. The reality of venture capital investing is that many investments fail to deliver a return, while a small number may succeed dramatically. This is why VC firms usually create a diverse portfolio of investments to manage their risk.
Venture capital can be a vital source of funding for startups, allowing them to grow quickly and potentially reach their full potential. On the flip side, VC investment often means giving up some level of control and ownership in the company, as the VC firm usually takes a board seat and has a say in major decisions.
The terms "venture capital firm" and "venture capital fund" are often used interchangeably, but there is a slight difference between them:
This is a management company that manages the investments in various startups and growth-stage companies. A venture capital firm is typically made up of partners and other investment professionals. They are responsible for sourcing potential investment opportunities, conducting due diligence, making investment decisions, and managing the ongoing relationships with the companies in their portfolio.
This is the pool of capital that the venture capital firm invests. The funds are usually gathered from a variety of sources, including institutional investors like pension funds, university endowments, insurance companies, as well as high-net-worth individuals. A single venture capital firm may manage multiple funds, often referred to as "Fund I", "Fund II", etc., each with its own investment thesis and portfolio of companies.
In summary, you can think of the venture capital firm as the manager, and the venture capital fund as the pool of money being managed.
Venture capital activity in London is robust, with many startups and growth companies receiving significant funding. The exact numbers can vary from year to year and depend on the specific source of the data, but some general trends and figures provide a snapshot of the venture capital landscape in London:
London tech firms raised £10 billion in venture capital funding. This represented a 3x growth in a decade and solidified London's position as the second most important tech hub globally, after San Francisco.
The same data showed that London tech firms were involved in 924 venture capital deals in 2022, more than any other European city.
Venture capital investments in London can range from a few hundred thousand pounds for early-stage seed funding to tens or even hundreds of millions of pounds for later-stage rounds.
The sectors attracting the most venture capital in London are typically fintech, software, and digital health, but there is also significant investment in other areas of technology.
There are hundreds of venture capital firms in London, ranging from small, niche firms to large, global players.
A single London-based venture capital firm may manage multiple funds, and the size of these funds can range from millions to billions of pounds.
There are numerous venture capital firms in London that play a key role in financing startups and high-growth companies in the UK and around the world. Here are a few notable ones:
Accel is a leading venture capital firm that focuses on early and growth-stage investments. They've backed well-known companies like Facebook, Slack, and Dropbox.
One of Europe's leading early-stage venture capital investors, Balderton has backed successful startups like Revolut and The Hut Group.
A multi-stage venture capital firm, Index Ventures has backed companies like Deliveroo, Just Eat, and Adyen.
Atomico invests in technology companies around the world, with a focus on Series A and beyond. They've backed companies like Klarna and Graphcore.
This early-stage venture capital firm has backed companies like Monzo and GoCardless.
Part of the Octopus Group, Octopus Ventures is one of Europe's largest venture capital teams. They have backed companies like Zoopla and Secret Escapes.
BGF (formerly Business Growth Fund) is the UK’s most active investment company, providing growth capital for small and medium-sized enterprises.
Venture capital firms generally earn income through two primary methods: management fees and carried interest.
These are annual fees that the firm charges the fund to cover operational costs. Typically, this is a percentage of the fund's total assets under management. Often, the management fee is around 2% per year, but this can vary. These fees cover salaries, rent, travel, legal fees, and other operating costs. The management fee is designed to provide a stable income for the firm regardless of the fund's performance.
Also known as the "carry," this is the VC firm's share of the profits from the fund's investments. Typically, a venture capital firm might receive around 20% of the profits after the return of the original capital to the investors, but this can vary. The idea behind carried interest is to incentivise the VC firm to maximise the fund's returns. The larger the profit the fund makes, the more money the firm earns through carried interest.
Let's use an example to illustrate this. If a VC firm raises a £100 million fund, it might receive around £2 million per year in management fees (2% of £100 million). Then, if the fund eventually generates £300 million from its investments (after returning the original £100 million to the investors), the VC firm would receive £40 million in carried interest (20% of the £200 million profit).